What Is a Cryptocurrency?

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What Is a Cryptocurrency?

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Cryptocurrencies act as a form of exchange and digital accounting systems, offering an alternative to traditional financial services. 

They give people full control over their funds and transactions.

Cryptocurrencies, or simply crypto, exist in digital form

Each crypto coin has a unique identification code consisting of letters and numbers.

Crypto is managed via mobile, or web apps called crypto wallets, each with a unique address.

However, its owner is anonymous, and only they can access the wallet using a private key.

Attempts at self-managed and anonymous payment systems began in the 1990s, but they all failed. 

Their creators had too much control over them, and there was no way to ensure that one crypto coin could not be spent twice.

In 2008, Bitcoin overcame these obstacles. 

While transactions remained anonymous, blockchain technology made them transparent, solving the double-spending problem and putting control in the hands of the system's users.

Unlike the dollar and the euro, cryptocurrencies are:

“The old question 'Is it in the database?' will be replaced by 'Is it on the blockchain?”

William Mougayar


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